b9_1155crypto words, explained
Every hard word in the guides, in one or two plain sentences. Pick a word for the longer version.
by topic: after death · self-custody · whitepapers · scams · risk
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2FA (two-factor authentication)
a second check on top of your password, usually a code from another device or app.
A
account delegation (EIP-7702)
a signature that lets a normal ethereum-style account run a smart contract's code.
address poisoning
sending tiny or zero-value transfers from a look-alike address so the victim later copies the wrong address from their history.
air-gapped signer
a signing device that never connects directly to a computer or network.
airdrop
tokens given out for free, often to early users.
allocation
how a token's supply is split between groups such as team, investors, treasury and the public.
asset map
a plain list of what crypto you hold and where, with no secrets on it.
B
BIP39
the common standard that turns a random number into a seed phrase of 12 to 24 words.
blind signing
approving a transaction or message your wallet cannot show in readable form.
block explorer
a free public website that shows the transactions, addresses and contracts on a blockchain.
burn
sending tokens to an address nobody controls, removing them from supply for good.
C
checksum
a built-in check in a seed phrase that catches many typos.
circulating supply
the tokens that can be traded on the market right now.
cliff
a waiting period before any vested tokens unlock.
concentration
having a large share of everything in one asset, platform, chain or wallet.
correlation
how much two things tend to move together, from −1 (move in opposite directions) to +1 (move perfectly in step).
custodial
a setup where a company, usually an exchange, holds the keys and you hold an account.
D
dead man's switch service
a service that releases keys or messages if you stop checking in.
derivation path
the route a wallet uses to find accounts and addresses from a seed phrase.
disposition effect
the habit of selling winners too early and holding losers too long.
drainer
a ready-made scam toolkit that empties a wallet once it is connected.
E
F
fake support
scammers who pose as a wallet's or exchange's support staff.
FDV (fully diluted valuation)
commonly price × max supply, or price × total supply if there is no max.
FOMO
fear of missing out: buying because something is moving and others are talking about it.
funding rate
regular payments between buyers (longs) and sellers (shorts) of perpetual futures.
G
gas
the network fee paid to have a transaction processed on a blockchain.
governance
token holders voting on a project's decisions.
H
hardware wallet
a small dedicated device that keeps the keys inside and signs transactions there.
honeypot
a token contract that lets people buy but blocks or heavily taxes selling.
hot wallet
a wallet whose keys live on a device that is connected to the internet, like a phone app or browser extension.
I
isolated vs cross margin
two ways an exchange decides how much of your money backs a leveraged position.
L
letter of instruction
a plain manual that tells your family what to do with your crypto if something happens to you.
leverage
controlling a position larger than the money you put up (the margin).
lightning
a payment network built on top of bitcoin for fast, small payments.
liquidation
the exchange force-closing a leveraged position when its margin falls below the required minimum.
liquidity pool
a pot of tokens (usually two) held in a smart contract that lets people trade between them.
LP tokens
the receipt for money put into a liquidity pool (on some exchanges an NFT); whoever holds it can withdraw that share.
M
margin
the money posted to open and hold a leveraged position.
mark price
a "fair" price, mostly based on an index of spot prices, that many exchanges use to trigger liquidations.
market cap
price × circulating supply.
market maker
a firm that keeps buy and sell orders on exchanges so a token can be traded.
max supply
the most tokens that can ever exist, if there is a cap at all.
mint and freeze authority (solana)
on solana, the keys allowed to create new tokens or freeze token accounts.
minting
creating new tokens.
multisig
a wallet that needs more than one key to move funds, for example any 2 of 3.
N
P
passphrase ("25th word")
an optional extra word or phrase added on top of a seed phrase.
permit signature
a free, off-chain signature that works like an approval once someone submits it (on tokens and apps that support it).
phishing
tricking someone into handing over a secret or signing something, usually through a fake site, message or support account.
pig butchering
a long-con investment scam built on a fake friendship or romance.
ponzi scheme
a scheme that pays earlier investors with money from new investors.
position sizing
deciding how big a trade is, based on how much you are willing to lose if it's wrong.
power of attorney
a legal document that lets someone act for you while you are alive.
private key
the secret that authorises coins to move from an address.
public key / xpub
a key that lets a wallet see an account's addresses and balances, but not spend.
R
recovery scam
a second scam aimed at victims, offering to get lost crypto back for a fee.
recovery test
checking that your written backup really recreates the same wallet, without moving any coins.
renounced ownership
when a contract's owner role is given up.
revenge trading
making a bigger trade right after a loss to win the money back quickly.
revoke
cancelling a wallet approval on the blockchain: setting it back to zero, or for NFTs, switching it off.
risk amount
the money you are willing to lose on one trade if the stop fills as planned (account × risk %).
rug pull
when the people behind a token or project take the money and leave.
S
SAFT
"simple agreement for future tokens": a contract to deliver tokens later, often used in early funding.
secret sharing (SLIP-39)
a way to split a wallet backup into several shares, where a set number of them restores it.
seed phrase
a list of words, usually 12 or 24, that can recreate all the keys of a wallet.
self-custody
holding the keys to your crypto yourself, instead of a company holding them for you.
slippage
the difference between the price you expected and the price you actually got.
smart contract
a program that runs on a blockchain and moves tokens according to its code.
stablecoin
a token designed to keep a steady price, usually tied to a major currency such as the dollar.
staking
locking tokens to help run or secure a network, usually in return for rewards.
stop distance
the distance, in %, from the entry price to the stop.
stop-limit order
a stop that turns into a limit order when triggered.
stop-loss (stop)
a planned exit price where a losing trade is closed.
stop-market order
a stop that turns into a market order when triggered.
sweeper
an automated script that moves funds out of a compromised wallet the moment they arrive.
T
timelock
a rule that makes something possible only after a set time or a set delay.
tokenomics
how a token's supply is created, shared out and released over time, and what the token is used for.
total supply
the tokens that exist right now, including locked ones that aren't circulating yet.
treasury
the funds a project or foundation holds for future spending.
U
unlock
the moment locked tokens become free to move and sell.
upgradeable contract (proxy)
a setup where a contract's code can be replaced while its address and balances stay the same.
V
verified contract
a contract whose source code is published on the block explorer and matches what is actually deployed.
vesting
releasing locked tokens gradually over a set schedule, often for the team and early investors.
W
wallet
software or a device that holds (or can recreate) your keys, shows balances and signs transactions.
wallet approval
a permission that lets a smart contract or address move a set amount of one of your tokens later, without asking again.
wallet configuration (descriptor)
a file or text that describes how a multisig or advanced wallet is built.
watch-only wallet
a wallet that only knows the public key, so it can show balances but cannot spend.
whitepaper
a document in which a project explains what it is building, how it works and how its token is meant to work.
Y
yield (APY)
the return a token or protocol advertises, often shown as a yearly percentage (APY).
education, not advice.